Getting too expensive (to buy a single family and rent it out) making the numbers work in the Newport area. I'd like to investigate other areas of the state where prices could still work. Where are you having success? Or where do think has the possibility? Ideally, I'm looking for a 3/4 bedroom single family for under $200,000 that would rent in the range of $1,800-$2,000. I like to be hands on, I do my own renting and property management, so I don't want to buy a place out of state. Thanks for any/all ideas
Not trying to sound rude, but can't you drive through Rhode Island in about in hour in any direction? If that's the case, I would suggest doing some driving and find some cities / towns / neighborhoods that have potential and fit your budget. Do some data research on home values in RI before you start driving so you're not wandering aimlessly. Once you find 6-10 towns, go visit a couple of them each weekend and see what they're all about. Chat with the locals at the hardware store and find out what the jobs are in the area, if the population has grown much, what the mayor has been up to, etc.
@David Boroughes Since you're going to be managing yourself, I'd start by looking at how far you're willing to drive and then drawing a mental radius around Newport or wherever you spend most of your time.
Then with that list, see which areas can support the rents you're looking for, and then set up some MLS searches (if you're an agent) or ask an agent to do so for you, for houses meeting your criteria (3+ BR, asking less than 200K, anything else you want).
You can also drive through those areas as @Nate Burgher suggested, and try pursuing off-market deals such as calling for-rent signs to see if the owner would sell, calling FSBOs to see if you can strike a win-win deal where the #s work for you, etc.
Finding a property these days where the #s work is difficult, it's definitely a grind, but you just have to set your criteria and grind through it. Think of it like prospecting for gold and sifting through all the rocks to try to find a nugget or two :)
@Anthony Thompson Thanks for the reply. I'm thinking of anything Cranston or south. Just throwing the question out there to see if anyone had specific areas they liked. I will have to investigate rents in different areas ( on Zillow, CL) then search home prices and work it through. I guess the bigger challenge for me figuring out which areas will attract the better tenants, even though it may cost me a little more to acquire a property, I am more comfortable working with a better class tenant, someone who would actually cut the lawn and clear their walkway, respect the property, and can manage to mail a check somewhere around the 1st of the month.
@Nate Burgher thanks for your thoughts, Yes, RI is small and there are still many many areas that vary greatly. What's a hardware store?? You mean like a Lowe's??? LOL I've seen LOT's go out of business here over the past twenty years...
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